8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15 (d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 8, 2003

INTERNATIONAL BANCSHARES CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Commission File Number 0-9439
Texas	74-2157138
(State or other Jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification No.)
1200 San Bernardo, Laredo, Texas	78040-1359
(Address of principal executive offices)	(ZIP Code)
(Registrant’s telephone number, including area code)  (956) 722-7611
None
(Former name or former address, if changed since last report)

Item 12. Results of Operations and Financial Condition

On August 8, 2003, International Bancshares Corporation issued a news release announcing second quarter 2003 earnings.  The news release, attached hereto and filed herewith as Exhibit 99, is incorporated herein by reference.

All of the information furnished in Item 12 of this report and the accompanying exhibits are also intended to be included under “Item 9 — Regulation Fair Disclosure” and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, is not subject to the liabilities of that section and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		INTERNATIONAL BANCSHARES CORPORATION
		(Registrant)
	By:	/s DENNIS E. NIXON
		DENNIS E. NIXON, President,
		and Chief Executive Officer
Date: August 8, 2003

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EXHIBIT INDEX

Exhibit Number	Description	Page Number
99	News Release of International Bancshares Corporation dated August 8, 2003	5

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EX-99

EXHIBIT 99

Contact::	Rosanne Palacios	Judy Wawroski
	Vice President of Marketing	Vice President
	International Bancshares Corporation	International Bancshares Corporation
	(956) 726-6636 (Laredo)	(956) 722-7611 (Laredo)

FOR IMMEDIATE RELEASE

IBC Announces Earnings

LAREDO, Texas—(BUSINESS WIRE)—August 8, 2003—International Bancshares Corporation (“IBC”) (Nasdaq:IBOC - - News) today reported net income for the second quarter of 2003 of $28.5 million or $.74 per share - - basic ($.72 per share - diluted) compared to $24.9 million or $.62 per share - basic ($.60 per share - diluted), which represents a 20% increase in diluted earnings per share and a 14.5% increase in net income over the corresponding period in 2002.

Net Income for the first six months of 2003 was $59.8 million, or $1.54 per share — basic ($1.52 per share diluted compared to $42.3 million, or $1.05 per share — basic ($1.02 per share diluted), which represents a 49.0% increase in diluted earnings per share and a 41.4% increase in net income over the corresponding period in 2002.  The per share data is fully adjusted for stock dividends, the most recent of which was a 25% stock dividend declared on May 19, 2003 and paid on June 15, 2003.

The increase for the first six months of 2003 compared to the same period of 2002 can be partially attributed to impairment charges taken by the Company during 2002 due to the adoption of Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets” (“SFAS 142”) and the Company’s share of losses on its investment in the Aircraft Finance Trust (“AFT”).  The adoption of SFAS 142 resulted in an impairment charge of $5.1 million, after tax, on its investment services unit during the first quarter 2002.  The total losses recorded on its investment in AFT totaled $6.3 million, after tax, for the six months ended June 30, 2002.

“I’m very pleased with the continued growth in our earnings,” said Dennis E. Nixon, Chairman and CEO of International Bancshares Corporation. “The Company has continued to grow its earnings in the second quarter clearly reflecting the Company’s commitment to improved earnings.”

Total assets at June 30, 2003 were $6.8 billion compared to $6.5 billion at December 30, 2002. Total net loans were $2.7 billion at June 30, 2003 and at December 31, 2002. Deposits at June 30, 2003, were $4.3 billion compared to $4.2 billion at December 31, 2002.

IBC is a $6.8 billion multi-bank financial holding company headquartered in Laredo, Texas, with over 100 facilities and over 200 ATMs serving 35 communities including Houston, San Antonio, Corpus Christi, McAllen, Brownsville, Port Lavaca, Zapata, Eagle Pass and several others in the central, southern and Gulf Coast regions of Texas.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts contain forward-looking information with respect to plans, projections or future performance of IBC and its subsidiaries, the occurrence of which involve certain risks and uncertainties detailed in IBC’s filings with the Securities and Exchange Commission.

Copies of IBC’s SEC filings and Annual Report (as an exhibit to the 10-K) may be downloaded from the SEC filings site located at http://www.sec.gov/edgar.shtml.